Lockheed Martin Corporation stock research
FY2024 Q4
Lockheed Martin (LMT) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased compared to the prior quarter but decreased from the same quarter last year. Gross profit and gross margin weakened substantially versus both the preceding quarter and the year-ago period, driven by a proportionally larger increase in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue increased compared to the prior quarter but decreased from the same quarter last year. Gross profit and gross margin weakened substantially versus both the preceding quarter and the year-ago period, driven by a proportionally larger increase in cost of revenue relative to revenue.
- The most observable driver of the gross margin decline is the sharp rise in cost of revenue as a share of revenue, which outpaced the revenue increase from the prior quarter and reversed the margin level seen a year ago.
- Compared to the immediately preceding quarter, gross margin weakened significantly as cost of revenue grew faster than revenue. Versus the same quarter one year earlier, gross margin also declined, with revenue slightly lower and cost of revenue higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.7%
Gross profit
$690.0M
Revenue
$18.6B
Cost of revenue
$17.9B
Quarter-over-quarter change
-8.7 pts
Year-over-year change
-8.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $17.2B | $2.0B | $15.2B | 11.6% |
| Jun 30, 2024 | $18.1B | $2.1B | $16.0B | 11.8% |
| Sep 29, 2024 | $17.1B | $2.1B | $15.0B | 12.4% |
| Dec 31, 2024 | $18.6B | $690.0M | $17.9B | 3.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2024
-8.7 pts
Year-over-year change
Dec 31, 2023
-8.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin decline is the sharp rise in cost of revenue as a share of revenue, which outpaced the revenue increase from the prior quarter and reversed the margin level seen a year ago.
Compared to the immediately preceding quarter, gross margin weakened significantly as cost of revenue grew faster than revenue. Versus the same quarter one year earlier, gross margin also declined, with revenue slightly lower and cost of revenue higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin compression persists.